Fairfield Greenwich Sued Over Madoff Losses

Dec 23 2008 | 2:28am ET

It was only a matter of time. Fairfield Greenwich Group, the New York-based hedge fund firm with the most exposure of any investor to a suspected $50 billion Ponzi scheme, has itself been sued by investors.

FFG, which had more than $7.5 billion invested with Bernard L. Madoff Investment Securities—including all $7.3 billion of its Fairfield Sentry Fund—“failed to perform even a minimum level of due diligence regarding the activities of Madoff” will reaping “millions of dollars in fees,” according to the complaint filed on Friday in New York State Supreme Court.

The lawsuit, filed by New York law firm Lovell Stewart and Halebian, seeks class-action status, as do the other two Madoff-related lawsuits that have been filed since Bernard Madoff’s arrest on securities fraud charges two weeks ago. In addition to FFG, the suit names founding partners Walter Noel, Andres Piedrahita and Jeffrey Tucker, as well as Brian Francouer and Amit Vijayvergiya of an affiliate, FG Bermuda. Vijayvergiya is also FFG’s chief risk officer. The suit alleges breach of fiduciary duty, negligence and unjust enrichment.

Plaintiff’s attorney Christopher Lovell told Bloomberg News that the suit was filed in state court, rather than in federal court, because the state court proceedings cannot be put on hold. He said he would quickly serve the respondents with subpoenas and seek a document preservation order.


In Depth

Hedge Fund Veteran Peter Borish Talks Trading

Dec 17 2014 | 9:32am ET

Peter Borish says 2014 was “tricky” from a trading perspective. “The best...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.